Polaris under pressure on BRP Inc. tariff concerns

Shares of Polaris (PII) are trading lower on Wednesday after competitor BRP Inc. (DOO) suspended its guidance for 2027, citing changes in U.S. tariff policy. The move follows the recent amendment of Section 232 tariffs on Steel, Aluminum and Copper imports into the U.S., which came into effect on April 6. For BRP, the amendment mainly leads to a 25% tariff on the total value of imported snowmobiles and the majority of ORV models, replacing the previous 50% tariff on applicable metal content only. The company currently estimates the potential incremental tariff cost related to this amendment to be in excess of $500M for the remainder of the year, before any mitigation measures that could partially offset these impacts. Polaris, which competes directly with BRP across ORVs and snowmobiles, has dropped more than 10% to $51.53 in morning trading.